Business
WeTouch Announces First Quarter Fiscal Year 2024 Financial Results with Cash Reserves of $94.8 Million
First Quarter Fiscal Year 2024 Revenue Reaches $14.9 Million, Marking an 11.2% Increase from 1Q 2023 CHENGDU, China, June 17, 2024 /PRNewswire/ -- WeTouch
About this update from Wetouch Technology Inc.
[{"type":"text","content":"First Quarter Fiscal Year 2024 Revenue Reaches $14.9 Million, Marking an 11.2% Increase from 1Q 2023\nCHENGDU, China, June 17, 2024 /PRNewswire/ -- WeTouch Technology Inc., (NASDAQ: WETH) (\"WeTouch\" or the \"Company\"), a leading innovator in the global touch display industry, today announced its financial results for the first quarter ended March 31, 2024.\n\n\"We achieved higher revenue in the first quarter of fiscal 2024 by aggressively promoting our high-end products. Although our cost of goods sold increased due to the export controls imposed by the U.S. Department of Commerce on advanced computing and semiconductor manufacturing to China, we expect the procurement costs of chips and other raw materials to stabilize after the second quarter of 2024 as our suppliers increase production volumes. We believe that the market demand for products with better materials and quality remains strong both in China and overseas, creating many exciting opportunities for WeTouch's long-term growth,\" concluded WeTouch Technology's CEO, Zongyi Lian.\nFirst Half Fiscal Year 2024 Financial Highlights\n- Cash Reserves: The company's cash reserves remain high at $94.8 million this quarter.\n- Total Revenue: Increased 11.2% to $14.9 million compared to $13.4 million for the first quarter of fiscal 2023. This growth is primarily related to an increase in sales volume in both China and international markets and higher average selling prices for new higher-end products.\n- Overseas Market Revenue: Reached $5.5 million, an increase of $1.4 million, or 34.1%. This was driven by a 12.9% increase in sales volume and an 18.1% increase in average selling price for industrial control computer touchscreens, automotive touchscreens, and gaming touchscreens.\n- Total Volume Shipped: Increased 7.3% to 681,370 units from 635,276 units in the first quarter of 2023.\n- Net Income: Decreased to $0.6 million, or $0.04 per diluted share, compared to $2.8 million, or $0.35 per diluted share, for the first quarter of fiscal 2023. The decrease is attributed to a temporary increase in sales costs and a higher number of shares outstanding.\n- Gross Margin: Decreased 45.0% to $3.3 million, or 22.4% of sales, compared to $6.0 million, or 45.0% of sales, in the same quarter last year. The decline is due to a seasonal short-term increased labor and material costs.\n- Oper...